Types of Companies in Delaware

Updated on Friday 27th January 2023

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If you want to start a business in USA, you may choose Delaware as the proper state for your activities. Among the suitable business entities you can choose we mention the limited liability companies, general and limited partnerships, corporations and sole proprietorships. Each form of business is subject to particular rules but overall, it respects the regulations imposed in each county. Complete information about how to set up a company in Delaware can be obtained on request from our team of specialists in company incorporation in USA.

Limited liability companies in Delaware

From the beginning, we mention that there are interesting benefits for opening an LLC in Delaware: there is no minimum share capital imposed and at least one shareholder can establish a business form like this. The owners of an LLC in Delaware have protected assets against possible debts. The profits and the losses of a limited liability company pass through the personal income tax returns of the shareholders in Delaware. One should consider appointing a representative agent whit a physical address in Delaware if the business is registered from abroad. A board of directors must be assigned in order to manage the activities of the LLC

Our company formation agents can provide assistance if you would like to start a company in USA. The formalities can be explained and managed by one of our specialists, who can also help you with opening a bank account. Depending on the type of structure you want to establish, we will guide you in terms of documents and requirements imposed by the authorities. You can also benefit from a free case evaluation as soon as you decide on working with our team.

Corporations in Delaware

Corporations in Delaware regard large-scale businesses, and the members of such entity are not responsible for the company’s debts or issues, just like in an LLC. Each corporation in Delaware must add words like incorporated, foundation, corporation, club, company, limited or association, and details like the business address, the purpose of the company and name of the registered agent which will act like the representative. Corporations in Delaware are subject to a franchise tax, and besides that, the annual report must be filed each year in June.  Besides registering a traditional corporation, one can direct the attention to professional corporations which can be set up only by members who own varied licenses in certain domains. If you want to set up a company in USA and especially a corporation in Delaware, please remember that our advisors can offer complete support.

Limited partnerships in Delaware

A limited partnership in Delaware is also a suitable business form to consider because the owners do not respond to the losses or debts registered. Individuals interested in opening a limited partnership in Delaware must agree on who the silent partner liable in the amount of the contributed capital is, and who the general member liable for the activities and the actions in the firm is.

General partnerships in Delaware

Business partners who want to share the same rights and interests in a company can register a general partnership in Delaware. In this matter, a signed contract which comprises the rules and regulations of the partnership is recommended. We also mention that the Division of Corporations in Delaware is in charge of issuing the certificates for companies in this state.

Foreign corporations with establishments in Delaware

Any corporation from abroad is welcomed in Delaware, regardless of the type of activities, as long as it respects the Companies Law. This can be registered with the Secretary of State for doing business in Delaware and it is subject to varied taxes in acceptance with the IRS (Internal Revenue Service) in America. Please consider that a corporation in Delaware must have a registered agent which can be a natural person with legal responsibilities or other companies in the state.

Taxes for companies in Delaware

Business persons whether local or from abroad can set up companies in Delaware and consider the tax benefits in this matter. For instance, there is no VAT (value added tax) and no sales tax which is a fee imposed in many states in USA. Additionally, one must know that a corporate tax is mandatory, and it is set at 8.7% rate for companies in Delaware.

If you want to register a company in USA and choose the suitable business form for your future activities in Delaware, please do not hesitate to contact our team of company incorporation agents in USA.